A recovering luxury property market, bolstered by the upcoming Olympics, draws international investors

After decades of slumping property sales, Tokyo is abuzz with news of hot properties, rising prices and a new wave of international buyers.

Last fall, a major Japanese developer put 22 new condominiums on the market in a building overlooking the lush green of the emperor's palace. All 22 sold on the first day of sales. The average price per square foot—$2,219—was the highest seen in Japan since 2008.